Question: I need some clarification on Reg CC. Our bank discloses next-day funds availability. Are we still able to put a case-by-case hold on if the check being deposited is large and out-of-state, even if it is a new customer's first deposit?
Answer: If your funds availability disclosure states that generally deposits will be available the next day, subject to exceptions on a case-by-case basis, you have reserved the right to apply case by case holds. The fact that it is a new customer and it's their first deposit does not affect your right to apply the hold.
When you apply a case-by-case hold you must, of course, give notice to the customer, but can then invoke whatever delay is appropriate. For example, if it is a local check, you can delay it until the 2d business day following the banking day of deposit; if it's a
nonlocal check, you can delay availability until the 5th business day (subject, in both cases, to the requirement to make the first $100 available on the first business day). If it is large (more than $5,000), you can put a
longer delay on the amount above $5,000 - so that the amount above $5,000 on a nonlocal check deposit can be delayed until the 11th business day.
The original version appeared in the April 2004 edition of the Oklahoma Bankers Association Compliance Informer.
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